8-KEarnings & ResultsExhibits & Filings

SLB LIMITED/NV 8-K Report, Financial Results (Jan 19, 2007)

Filed January 19, 2007For Securities:SLB

Summary

SLB LIMITED/NV (SLB) filed an 8-K on January 19, 2007, primarily to announce its fourth-quarter and full-year 2006 financial results. This report is critical for investors as it provides insights into the company's operational performance and financial health at the end of 2006. The filing includes a press release and supplemental information, detailing both Generally Accepted Accounting Principles (GAAP) and non-GAAP financial measures, allowing for a comprehensive understanding of the company's financial activities. The company highlighted several non-GAAP financial measures, including net debt, income and earnings per share before certain charges and credits, and Return on Capital Employed (ROCE). These measures are presented to offer a clearer view of the company's core operational performance and its effectiveness in generating value for capital providers, distinct from any one-time or irregular items. Investors should review these figures in conjunction with the company's official GAAP-based financial statements to gain a complete picture of SLB's financial standing and strategic financial management.

Key Highlights

  • 1Announcement of Fourth Quarter and Full Year 2006 financial results.
  • 2Filing includes a press release (Exhibit 99.1) and supplemental information (Exhibit 99.2) detailing financial results.
  • 3Introduction of several non-GAAP financial measures for enhanced operational insight.
  • 4Key non-GAAP measures discussed: Net Debt, Income/EPS before charges/credits, and Return on Capital Employed (ROCE).
  • 5Management utilizes non-GAAP measures to evaluate period-over-period performance and operational trends.
  • 6Net Debt definition: gross debt less cash and certain investments, aimed at reflecting deleveraging efforts.
  • 7ROCE definition provided, focusing on net income generated relative to capital employed by stockholders and bondholders.

Frequently Asked Questions

The primary purpose of this 8-K filing is to announce and provide investors with SLB's Fourth Quarter and Full Year 2006 financial results. It includes a press release and supplemental financial information.

SLB is reporting several non-GAAP financial measures, including Net Debt, Income from continuing operations before charges and credits, Diluted earnings per share before charges and credits, and Return on Capital Employed (ROCE). Management believes these measures offer a more effective view of operational performance and trends.

SLB defines Net Debt as gross debt less cash, short-term investments, and fixed income investments held to maturity. The company states this measure provides insight into its indebtedness level and deleveraging efforts.

SLB presents non-GAAP financial measures to allow management and investors to more effectively evaluate the company's operations period over period and identify operating trends that might otherwise be obscured by excluded charges and credits. These measures should be considered in addition to, not as a substitute for, GAAP measures.